EUR/USD Price Forecast January 23, 2018, Technical Analysis

The EUR/USD pair gapped at the open on Monday, pullback to fill that gap, and then rallied again. Overall, I still believe in the uptrend when it comes to this market but I also recognize that we had recently had a strong move to the upside, and therefore it makes sense that we may have to take a bit of a breather. If we can break above the 1.23 level, the market should be free to go to the 1.24 level, and then eventually the 1.25 level after that. The 1.25 level is a large, round, psychologically significant number, and of course will attract a lot of attention. If we can break above there, the market should continue to go much higher, and continue the overall uptrend that I believe we are starting to form.

If we did pull back, I think there’s plenty of support underneath, especially between the 1.2150 level in the 1.22 level. That is a bit of a “range”, and as a result I think that it is only a matter of time before the buyers get involved. I like the idea of buying dips, as they offer value and when I think is a market that has broken out significantly. The 1.21 level underneath is the beginning of massive support, extending down to the 1.20 level. The 1.20 level is the absolute “floor” in the market of the uptrend. Because broken to the downside, then everything changes. In the meantime, I think that a lot of people should continue to look for value.

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